HELSINKI (Reuters) - Nokia Siemens Networks <NSN.UL> said
on Monday it had won an order worth $935 million from Kuwait
telecom operator Zain <ZAIN.KW> to build second- and
third-generation mobile networks in Saudi Arabia.

Nokia Siemens Networks, a 50-50 joint venture between the
world's largest cellphone maker Nokia <NOK1V.HE> and Germany's
Siemens <SIEGn.DE>, said the deal also includes a managed
services contract for five years.

"It's a very sizeable deal. Very good news indeed for
Nokia," said eQ analyst Jari Honko.

Shares in Nokia were up 0.36 percent at 24.76 euros by 0954
GMT, outperforming the DJ Stoxx European technology index
<.SX8P> which was around 1.4 percent weaker.

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Telecom equipment makers, like Nokia Siemens and Ericsson
<ERICb.ST>, are suffering as operators in Western countries
curb investment and competition for large deals in emerging
countries intensifies.

This has pushed prices so low that vendors have started to
walk away from some deals.

Zain, Kuwait's biggest mobile operator, made the highest
bid for Saudi Arabia's third mobile license last year, paying
$6.1 billion as part of its expansion in the Middle East.

"This customer has traditionally been co-operating with
Ericsson. It might be that in mobile network Ericsson will get
its share from the deal," said Handelsbanken analyst Karri
Rinta.

Nokia Siemens said it would be the sole supplier for the
core network, but other vendors could deliver radio network
technology.

"Nokia was rather late going into these, it seems that NSN
is now getting a firmer position there," Rinta said.

Shares in Ericsson fell after the news and were 2.5 percent
lower at 13.82 crowns in Stockholm.

(Reporting by Tarmo Virki in Helsinki; additional reporting
by Agnieszka Flak and Terhi Kinnunen in Helsinki and Ulf
Laessing in Kuwait; editing by Sue Thomas)